Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
9 }  B8 X" e0 u% n6 }expect much from Crude Oil producers and future is not with the
" ^3 _. C5 i% C: ~9 ?companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
7 r; r: F. q! M' R  {2 ^crude prices improves. This implies also to good names such as Shell,
  T! g4 ^6 a- a! U% L+ o. |9 J+ KEXXON, BG, BP, Cheveron ....xyz.. oils

; D* a5 x& n0 l# p: M% Z4 SRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

, _, r2 G4 m/ v; [
) j% T2 W; Y: k% \  ^* J6 rThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
# M' H5 \# d( V# I8 b. ?Arabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
2 @( x$ `% W& S# e; I2 M5 S  BThis is the largest find in North America.
, ]3 g2 L$ ^6 y- i" p/ F
' y( P8 `, [3 F+ }+ z# z' V$ y7 Y4 {
+ T  D$ Y" y: O4 K; j+ S* g' [3. New methods of injecting CO2 and surfactants into oil wells is
0 s7 j: M; Z; t( @0 v+ g. t$ Mbeing used to double their output.

: V4 U6 ~! k2 l. i$ r. v6 K+ J9 c# `
) _" o/ H$ R( T4. Production of bio-fuels is beginning to reach critical mass. Bio
- t$ C7 X- o! Jfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


. d7 o7 K/ J# g: s) [3 p- H5. Virtually every restaurant in the US and all food processing plants
8 ]: P. D# f4 L: v- {3 k: C' Hare now selling their used oil to bio-diesel producers. Every pork,
, m% z) ]+ b! t9 d$ Bcattle, turkey and chicken processing plant will soon sell their fat
0 i4 I0 A4 e1 e) C- yto bio-diesel producers. One pork processing plant in Oklahoma is
; [# t9 g" P) Y! xproducing 30,000 gallons of bio-diesel per day from pork fat.
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$ V7 I, i. t! R5 o2 J% ^
6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
  X( O5 I/ P' |, Y4 Vexpected to be built in the future. Much of the energy they produce
will replace oil.
6 K, O! s- ~  ~4 `; z: F
9 j& W2 r( d) S# m! R
9 S% J! `3 F, X2 D' d3 u0 p+ o: b7. Every company in any form of transportaion business is replacing
! j( Z+ {" p0 X, folder equipment such as trucks, airplanes, train engines, ships, etc.
5 W" j* w& C1 _1 q. m: D6 twith new more fuel efficient equipment. Airlines and railway companies
7 y0 Y+ ?; a: s0 h, P& T$ Qare experiencing 20% to 25% better fuel econony with the new
equipment.

. I4 Y1 K# L& X6 z9 \
1 f- z) \0 `0 n* R6 \Airlines are flying airplanes with bio-fuel. They are finding the bio-
# Y5 k0 o5 F& m5 q# jfuel is cleaner and performs better than jet fuel.
$ B4 ]2 C- T& F2 n2 }

& L2 ~) `# a9 a9 e# K* J8. Cities and counties throughout the US are selling the rights to
0 F. X7 O6 C1 T  g2 ccapture methane gas from landfills. This is a huge source of gas
8 ?: }' s7 F, |available at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
' S$ F# [) v. I- T+ @" F7 hoil wells.

! T& k6 o) n' ]. v
0 F9 [1 r4 b1 k10. Solar, wind and ocean energy is displacing oil as an energy
) R& i. h& ?! E: ksource. Three new wind turbines are being erected every day in the US.

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% U' C: r1 y: y  @6 `# R( O6 ?Each of the above by itself will not make a large difference in the
( J  r9 V: k0 O: l( I+ Vprice of crude oil but the sum of all of them together is world
$ d1 Q) E0 Y. ~6 ?( L) ]3 y0 `0 Kchanging. The important thing is that OPEC no longer has the ability
& H' t3 u! [; D# v0 }# m. M' C, @to control oil prices.
9 u; }9 g. A# P+ e! f" D6 Z% G
+ e8 N; N: y) k: ~
( D5 w' p) y0 h7 nWith the above scenario, I still believe that there are under
* t( B" C+ C3 i8 z, O& Hperformed OIL companies and probably they are yet to get the justified
value .....
3 t, r9 y& ^9 w2 z. @7 x  ?& G5 ZIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only